The simple term Self-Invested Pension may be enough to turn most people who are not business minded off, as the investment plan can sound intimidating to an average person, however, they are among some of the best pension plans for a number of reasons and certainly warrant a second look.
Therefore, before you automatically dismiss a SIPP as something that cannot possibly help you it may be worth it to take a second to review the following benefits that come along creating your own personal pension plan for the future.

One of the first and most sought after advantages of a self-invested pension is the fact that it offers flexibility and freedom to the investor since it allows them to choose where to invest their funds, and how they want to invest them.

For those who have large pension funds that want to have more control over their investments, a SIPP is really the best choice. After all, it is your money that is being contributed into the pension plan, so why not take the initiative to make sure you know what is happening to it after this point has passed.

Another reason to look into a self-invested pension is the fact that they usually do not come with any penalties or hidden charges. In fact, most SIPP schemes will have transparent charging structures that make it easy for anyone to figure out how their pension is being planned.

It is strongly recommended that you get advice from an independent financial advisor by visiting Think IFA or Unbiased before starting a SIPP

The fee structure generally has nothing to do with the size of the fund and will not change regardless of how long the plan is in place. This often makes an SIPP one of the best pension plans for someone that knows they have a large pension to manage or someone that expects to be building their pension for quite a few more years.

In addition, those who over the age of 50 but not quite yet 75 often find that a self-invested pension is a great way to draw out their pension without locking themselves into a fund that has an annuity attached to it. This is because a SIPP can be used when someone is moving slowly towards ‘income drawdown’ and is a great way to draw income throughout retirement since there are not as many restrictions, fees, or regulations placed on the scheme.

Once again, the freedoms that come with SIPPs are hard to beat when you compare them with other types of pension plans. With this in mind, those that that want to transfer funds from other pensions, control their own investment opportunities, slowly enter into a retirement drawdown, or invest large amounts of money into their pension schemes will likely find the best pension plans for them are SIPPs.

The simple truth is that it is hard to beat the flexibility that comes with a self-invested pension, and the reward for your due diligence will be a comfortable retirement sum later in life making your hard work worth it.